…A typical transition of power lasts about 12 months, says Paul Hodgson, chief research analyst at GMI Ratings, which advises investors on corporate governance. Mulally’s long goodbye could also create confusion at a company that seems to have finally found focus. “This is an awful long time for Mulally to pass the flame,” Hodgson says. [...]
Tag Archives | Golden parachute
Reuters: Pandit seen leaving Citi without much of a parachute
October 16, 2012 in GMI In the News
By Tom Hals and Dena Aubin Vikram Pandit may leave Citigroup Inc without a rich exit package, compensation experts say, although final terms of his departure likely will not be known for several days… …”Most of what he will leave behind is not actually worth anything at all at the moment,” said Paul Hodgson, chief [...]
£7MM Pay-off for News Corp’s Rebekah Brooks
October 16, 2012 in CEO Pay, Daily Viewpoint, Scandals
By Paul Hodgson – Chief Research Analyst Yesterday the Financial Times wrote that the former CEO of News International, Rupert Murdoch’s U.K. newspapers business, Rebekah Brooks received a golden parachute of more than £7 million on her resignation. The paper describes the payments as comprising cash, pension payments, an allowance for legal fees and the [...]
MercuryNews: Yahoo, HP, PG&E Showered Departing Execs with Millions
July 13, 2012 in GMI In the News
Call it the golden goodbye. Four of the Bay Area’s biggest companies handed out $67 million to five chief executives who retired under pressure or were shown the door this year and last. While these parting gifts were dwarfed by the pay of Apple (AAPL) CEO Tim Cook, whose $ 378 million topped our annual [...]
Was Sanjay Jha’s Pay a Good Return on Investment?
May 30, 2012 in CEO Pay, Daily Viewpoint, News and Opinions
By Paul Hodgson – CCO and Senior Research Associate [This post first appeared on Forbes.com] The news that Sanjay Jha is stepping down after successfully negotiating the sale of his company Motorola Mobility Holdings to Google confirms the fact – once again – that compensation committees do not understand the terms “long-term” and “incentive”. Included [...]
GMI’s Largest Severance Packages of the Millennium
January 11, 2012 in CEO Pay
GMI released today a report detailing the largest severance packages paid to CEOs since 2000. In total, the 21 CEOs received severance of almost $4 billion.It identifies 21 CEOs who received “walk-away” packages in excess of $100 million. The list includes some of the most controversial termination payments of all time, including Jack Welch’s (GE) [...]
Shareholders picking up the tab again at CareFusion
September 29, 2011 in CEO Pay
By Ashley Kotzur – Remuneration Analyst CareFusion filed their 2011 proxy statement last week, so it’s a good time to reexamine the actions taken by the Compensation Committee over the last 12 months. In particular, this is an interesting case study in how equity is awarded to incoming and outgoing CEOs. In October 2010, GovernanceMetrics [...]
HP board trips up again
September 21, 2011 in Scandals
By Paul Hodgson – CCO and senior research associate With the news that the HP board is trying to oust its newest CEO Leo Apotheker I began to try to think of another board that has made so many mistakes in so short a time. Phone tapping, Mark Hurd, and now this. I couldn’t. Except, [...]
You Say Goodbye and I Say Hello… Hello, Hello
September 14, 2011 in CEO Pay
By Scott Patterson – Compensation Team Leader Former CEO and Chairman of Hewlett-Packard, Mark V. Hurd, had himself an impressive year as far as remuneration figures are concerned. The proxies filed in 2011 by Hewlett-Packard and Oracle Corporation reveal a situation where an executive who was to be punished for violating business-conduct standards was well [...]
Say-on-Golden Parachute at Kinetic Concepts
August 9, 2011 in Executive Pay: Say on Pay
By Paul Hodgson – CCO and Senior Research Associate Severance payments are a key metric in ratings for old GMI, for The Corporate Library, and on the Executive Pay Scorecard. It is clearly key under Dodd-Frank too, since they mandated a “say on golden parachute” vote at the time of any kind of transaction that [...]